Riad vs Apartment: Which Property Earns More on Airbnb in Marrakech?

The question comes up every month in our conversations with investors: should you bet on a riad in the Medina or a modern apartment in Guéliz? The short answer is: it depends on your investor profile. The long answer follows.

Market Figures: What These Two Property Types Actually Generate

Let us begin with the raw data, drawn from our managed portfolio and from Airbnb market data for Marrakech.

The Riad: High Nightly Rate, Moderate Occupancy

A well-positioned riad in the Medina — say, three bedrooms, a central courtyard, careful décor, and a strong Airbnb profile — rents for between 1,500 and 4,000 MAD per night. In high season (October–December, February–March), that same riad can reach 5,000 to 7,000 MAD on event weekends.

But the average annual occupancy rate for a riad hovers around 55 to 70%. In summer, when temperatures exceed 40°C, tourists abandon the Medina. The colonnaded walkways and high-ceilinged rooms — so pleasant in winter — become furnaces in July and August. Even with air conditioning, the perception of "riad = unbearable heat" is difficult to overcome.

The Apartment: Moderate Nightly Rate, High Occupancy

A well-equipped two-bedroom apartment in Guéliz or the Hivernage district rents for between 700 and 1,400 MAD per night. Less spectacular than the riad, but the clientele is broader and more consistent: business travellers, couples on city breaks, Moroccan families travelling domestically, groups of young visitors.

The occupancy rate of a well-managed apartment reaches 70 to 85% across the year, with a less pronounced low season. Air conditioning is built in as standard, and a location close to Guéliz restaurants and shops is a strong selling point in summer.

Financial Comparison Over 12 Months

Here is a simulation based on real properties in our portfolio, to make the comparison concrete:

Criterion	3-bed Riad (Medina)	2-bed Apartment (Guéliz)
Average nightly rate (annual)	2,200 MAD	950 MAD
Average occupancy rate	62%	78%
Nights let per year	226	285
Annual gross revenue	497,200 MAD	270,750 MAD
Operating costs	140,000 MAD	55,000 MAD
Net revenue before tax	357,200 MAD	215,750 MAD
Estimated acquisition price	3,500,000 MAD	1,200,000 MAD
Net gross yield	~10.2%	~18.0%

The counter-intuitive conclusion: the apartment generates a yield almost twice that of the riad, despite lower gross revenue. Why? Because its acquisition price is three times lower, and its operating costs are substantially reduced.

The Operating Cost Equation

This is where many investors underestimate the riad.

Riad operating costs:

• Cleaning staff: a three-bedroom riad with a courtyard requires three to four hours of cleaning between each stay, often with two people. Budget 180–250 MAD per clean, equating to 40,000 to 55,000 MAD per year depending on occupancy
• Maintenance of traditional surfaces: tadelakt plaster cracks, zellige tiles come loose, carved woodwork develops a patina. Allow 15,000 to 25,000 MAD per year for routine upkeep
• Gardener or courtyard maintenance: a courtyard with a fountain and plants requires a weekly visit
• Water: fountains and gardening consume far more than a standard apartment
• Air-conditioning systems in historic architecture: quotes for air-conditioning a traditional riad frequently exceed 80,000 MAD

Apartment operating costs:

• Cleaning: two hours for a two-bedroom, one person, approximately 100–130 MAD per clean
• Maintenance: standard surfaces, routine repairs — budget 8,000 to 12,000 MAD per year
• Air conditioning: modern systems already installed, controllable running costs

Location: Medina, Guéliz or Hivernage?

The Medina is the natural home of the riad market. It is also the most operationally complex neighbourhood to manage: narrow lanes complicate logistics, service providers are harder to mobilise, and planning regulations can restrict renovations.

Guéliz is Marrakech's modern business district. Demand is diverse — tourists, business travellers, Moroccan families — and relatively stable year-round. New or recent apartments benefit from modern amenities that business travellers appreciate.

The Hivernage is Marrakech's upscale hotel quarter. Well-positioned apartments benefit from proximity to the city's palace hotels and fine-dining restaurants. The clientele is more affluent and rates are slightly higher than in Guéliz. Ideal for a premium apartment.

Renovation and Fit-Out: The Forgotten Figure

Before investing, the condition of the property is critical. Riads in the Medina often require partial or total renovation. A riad in poor condition frequently needs 500,000 to 2,000,000 MAD of renovation work to be competitive on Airbnb. This pushes the break-even horizon back by three to five years.

A modern apartment in a recent Guéliz residence can be launched on Airbnb following basic decoration and furnishing: budget 50,000 to 120,000 MAD for a fully Airbnb-ready fit-out (furniture, bedding, kitchen equipment, décor).

Licences and Regulation

Short-term rentals in Marrakech are regulated. Both property types require authorisation from the municipality and registration with the tax authorities. Riads often need to register as tourist accommodation establishments, which involves specific safety standards (fire extinguishers, emergency exits, guest registers).

Regulation evolves regularly. Working with a manager who follows these developments protects you from the risk of late compliance.

Which Profile Suits Which Investment?

Choose the riad if:

• You have an acquisition budget of 3,000,000 MAD or more
• You are prepared to invest in renovation and ongoing maintenance
• You are targeting premium international guests and high nightly revenue
• You have an investment horizon of 10 years or more
• The patrimonial value of the property matters to you as much as the yield

Choose the apartment if:

• Your budget is between 800,000 and 1,800,000 MAD
• You prioritise a high yield and straightforward operations
• You want regular income with few operational surprises
• You are not based in Marrakech and want to minimise maintenance headaches
• You prefer to diversify across several properties rather than concentrating on a single asset

Our Verdict

The riad generates higher gross revenue and offers a unique patrimonial appreciation potential. But its net yield is structurally lower than the apartment once real operating costs are factored in.

For a first rental investment in Marrakech, we systematically recommend the apartment. The net yield is higher, management is simpler, and you can begin generating revenue within a few weeks rather than a few months.

For an experienced investor seeking a distinctive heritage asset with strong high-season revenue potential, the riad remains a very relevant option — provided operating costs are well controlled and management is entrusted to specialists.

Still undecided? Our team can analyse your specific project and give you a personalised recommendation as part of our free audit.